When accounting for a cash flow hedge, IAS 39 Financial Instruments: Recognition and Measurement, requires that hedge ineffectiveness is:
A) recorded in profit or loss;
B) separately recorded in equity;
C) recorded separately as a financial liability;
D) capitalised as a deferred asset.

Question

Quizplus · Accepted Answer

Hedge ineffectiveness in a cash flow hedge is recognized in profit or loss according to IAS 39.

When Accounting for a Cash Flow Hedge, IAS 39 Financial